Micro-Loaning | A new form of de-institutionalizing finance

The Loan Project:
-Micro-Loaning to Americans. You can keep the love here too.

Undercutting the Credit Cards.

-Mechanism:

Sell loans to people that are involved in the network and through a self-rating system of recommendations allow people to loan money to themselves. Utilize Paypal to have an easy way for transferring funds.

--Examples: Couchsurfing.com | Ebay |

-Accountability:

When a person agrees to a loan, they "Buy" a voucher with their credit card information. If the money isn't returned by a certain date, the loan is "Bought" with the credit card. The Credit Card company takes over the responsibility of the loan and collection.

-Limitations:

Obviously, a person taking a loan would not be able to take more than a set amount (possibly set by credit card limits

Why is this good?

Credit loaning for a longer time than 30 days at 0 percent interest.

People are able to help other people with money they don't plan to be using for a long time.

Collective Loaning: 1000 dollar loan takes $2 dollars from everyone's paypal account (with approval one-click approval)

-De-institutionalizing the Loan Market:

-- Creates more competition
-- take small loan for an extended period of time for a much smaller interest rate than a credit card or free
-- Take out the Middle man (banks and loan agents) and create a facilitator that connects the individuals.

-Examples:

--Kiva.org for America (much larger scale)

--Firms have loan programs for money taken out of everyone's salary per month in post soviet states.